Financial Performance - For the three months ended March 31, 2021, the company generated $18,000 in revenue, a decrease of 30.77% from $26,000 in the same period of 2020[151]. - Total operating expenses for the three months ended March 31, 2021, were $15,072,656, an increase of 1,776.5% from $844,989 in the same period of 2020[150]. - The company reported a net loss of $15,653,330 for the three months ended March 31, 2021, compared to a net loss of $7,550,772 for the same period in 2020[150]. Expenses Breakdown - General and administrative expenses increased by $14,293,772, or 2,372%, from $602,641 to $14,896,413, primarily due to an increase in stock-based compensation[158]. - Research and development expenses decreased by $21,075, or 11%, from $186,328 to $165,254, attributed to a reduction in stock compensation[156]. - Interest expense decreased by $104,412, or 37%, for the three months ended March 31, 2021, compared to the same period in 2020[160]. Cash and Working Capital - As of March 31, 2021, the company had cash of $2,500,909, down from $3,064,610 as of December 31, 2020[166]. - Working capital surplus decreased to $1,302,698 as of March 31, 2021, from $2,142,229 as of December 31, 2020[166]. - The net cash used in operating activities for the three months ended March 31, 2021, was $813,702, primarily due to a net loss of $15,653,330[175]. Financing Needs and Activities - The company required additional equity and/or debt financing to continue operations due to an accumulated deficit of $105,496,163 as of March 31, 2021[167]. - The company anticipates needing at least $12,000,000 to complete a Phase 2 clinical study of BRTX-100[172]. - The company secured $1,189,413 in DIP financing and $3,848,548 in debt financing as part of its Chapter 11 reorganization[172]. - Net cash provided by financing activities for the three months ended March 31, 2021, was $250,000, primarily from a loan under the Paycheck Protection Program[176]. - Approximately $14,700,000 in outstanding debt and other liabilities were exchanged for shares of common stock and new convertible notes during the reorganization[172]. - The company has sufficient cash to fund operations for the twelve months following the filing date due to recent financing efforts[172]. - The company may face challenges in raising additional capital on favorable terms due to existing security interests in its assets[170]. Future Expectations - The company expects marketing and promotion expenses to increase in the future as it ramps up marketing activities following full commercialization of its products[153]. - The company does not believe inflation has materially impacted its business or operating results during the reported periods[178].
BioRestorative Therapies(BRTX) - 2021 Q1 - Quarterly Report